Basically my question is do i group computers in security groups then add that group to the policy's security filtering? For some reason i've always though of security groups as appling only to users...

thanks for clearing that up..i tried it out and i did see the policy being applied, but the msi is not being installed ... how do i start troubleshooting?
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v-dogAug 16 '12 at 18:16

@v-dog Check the logs. Should almost always be your first troubleshooting step. (In this case, the client logs and/or rsop should point you at why the msi isn't installing.)
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HopelessN00b♦Aug 16 '12 at 18:29

Have you rebooted the computer since setting up the GPO? If so, how many times? Software installation only occurs on startup and sometimes requires several reboots.
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joeqwertyAug 16 '12 at 18:34

i'd also check that application event log to make sure the app its self isn't failing for some reason.
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Eric C. SingerAug 16 '12 at 18:52

i've rebooted it once, will reboot it again ... no errors in application log ... where do i find the rsop? is there a report on the group policy manager that tells me if the policy was aplied?
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v-dogAug 16 '12 at 19:20